The LA Times reports a panel of judges, agreeing with a lower court ruling, rejected Activision Blizzard's appeal to throw out a suit by the band No Doubt over the use of its images in the game Band Hero. In a classic example of making sure to "read the fine print" on the contract, No Doubt sued after the band felt it was turned into a "virtual karaoke circus act," when its in-game avatars could be used to sing songs that were not its own.

Two years ago, when this whole situation started, the Guitar Hero franchise (and its spin-offs) were adding billions to the Actiblizzard coffers. The Guitar Hero franchise may be dead now, but the lawsuits carry on.
source - latimesblogs.latimes.com